Turkey’s Bad News Effect On Property Investors

Istanbul PropertyThere’s only bad news coming out of Turkey at the moment. The more investors hear it, the more it starts to make them feel uneasy.

What is happening in Turkey may not be on the scale of an Arab Spring, however what is different about this protest movement is its strike at the heart of what foreign investors have been particularly interested in during the last two years – the Turkey construction boom.

The occupation of Gezi Park was triggered by the opposition of city residents to the bulldozing of one Istanbul’s last remaining green spaces. It was about slowing down the speed of building work that has taken the people of Istanbul by surprise.

They are not alone, investors too have been left stunned by the sudden appearance of rioters on the streets of Istanbul and this will likely have a short term effect. This is because bad news naturally has an effect on everyone who hears it. It can also make us all more cautious about doing something.

In this case investors may be put off at the thought of investing overseas. Turkey remains an unfamiliar market for most buy-to-let investors despite its obvious potential for strong capital growth.

So as long as the demonstrations and potential strikes continue, there will be a lot of people who are sent into a mild panic at the news headlines.

The good news is, if you are far-sighted enough, this is your window of opportunity.

There is a good chance that the recent unrest will apply a break on Istanbul’s runaway price growth as the negative press continues. Yet Gezi Park is just a small area in the centre of the 5,343 square kilometres that makes up the city of Istanbul and its suburbs.

If the protests do have an effect on investor sentiment, developers will be afraid that prices will fall and be more likely to accept an offer until the trouble subsides and the market starts to recover again.  This limited window of opportunity will only last as long as the bad news.

The great thing about property investment is that no matter what the mood of the market is at the time, there will always be an opportunity for smart investors and this opportunity is now. The same thinking applies when you hear bad news on things like interest rates or rising unemployment.

Most of what you hear will be temporary and old news a week later.

When the dust settles, the strong long-term fundamentals of the Istanbul property market remain – a growing rental market, housing shortages, a rapidly expanding population and economic growth.

Are you an investor concerned about events in Turkey? Please leave your comments below:

Kind regards

Brett Tudor
Property Expert

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Categories: Istanbul Property / Property Invest

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